Paradise Papers put pressure on local regulators

Author: John Crabb | Published: 15 Nov 2017

The latest in a string of recent data breaches has revealed
that local regulators and systems in offshore hubs are failing
to prevent corruption and money laundering activity, according
to market participant. It has also exposed the growing
divergence between public perception and the rule of law when
it comes to legal tax avoidance.

The Paradise Papers, the recent theft of 13.4 million files
from law firm Appleby and its fiduciary business Estera,
exposed a network of companies and individuals, including
politicians, the British monarchy and Facebook that have been
involved in the avoidance of tax in 19 so-called tax havens
across the world.

While moving money offshore is legal in practice, the breach
has reopened discussions, propelled by the Panama Papers leak
in 2016, that suggest the global financial system is not
functioning correctly, and that complex cross-border tax
corporate structures are being taken advantage of to...